Total surplus measures the
a. loss to buyers from paying higher prices plus the benefit to sellers from receiving lower prices.
b. buyers' willingness to pay less the sellers' costs.
c. fairness of the distribution of resources in society.
d. value to the government of goods and services sold in society.
b
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A monopoly is a firm that produces a good or service for which no close substitute exists
Indicate whether the statement is true or false
Suppose that in 2016, the national income in the United States was $200 billion, depreciation was $15 billion, personal taxes were $20 billion, and transfer payments were $10 billion. Gross domestic product in 2016 is
A) $185 billion. B) $215 billion. C) $220 billion. D) $245 billion.
The consumption function shows
a. how fast the economy is consuming its capital. b. that the amount of national income determines the rate at which the economy consumes its resources. c. that households’ incomes determine how much the households will spend for consumer goods. d. the rate at which people actually use up their consumer goods.
Equilibrium and disequilibrium
A) are real world states. B) are mental constructs used by economists. C) foreshadow what is about to happen in a market. D) a and b E) a, b and c